Court Dismisses Falana’s Suit Against CBN On Sale Of Polaris Bank

Justice Lewis Allagoa of a Federal High Court in Lagos on Wednesday dismissed a suit filed by human rights activist, Chief Femi Falana (SAN), challenging a purported sale of Polaris Bank

Justice Allagoa dismissed the suit following an application by the learned silk, seeking to discontinue the same before the court.

The News Agency of Nigeria (NAN) recalls that Falana had instituted the action in suit FHC/l/CS/87c/23 against the Central Bank of Nigeria (CBN) and Polaris Bank Nigeria Ltd.

In his originating summons, the plaintiff had asked the court to determine as follows:

“Whether by the provisions of section 42(2) of the Banks and Other Financial Institutions Act 2020, and Public Procurement Act, 2007, the CBN could validly sell Polaris bank for N50 billion having earlier revitalised same for N1.3 trillion .

Falana had consequently sought a declaration that the purported sale of Polaris bank by CBN on Oct. 19, 2022, is illegal and violates the Public Procurement Act, 2007.

He avers that the purported sale also violates the provisions of the Banks and Other Related Institutions Act 2020.

The plaintiff had consequently sought an order, setting aside the sale of Polaris bank .

When the case was called on Wednesday, Falana announced appearance for himself as both plaintiff and counsel, appearing for himself .

Mr Augustine Okafor appeared for the first defendant while Mr Olabisi Makanjuola appeared for the second defendant.

Falana then informed the court that he seeks to withdraw and discontinue the suit following a takeover of Polaris bank by the federal government.

According to him, the federal government, having found that the sale of Polaris was illegal, had decided to take over the bank.

He then sought to withdraw the suit on that grounds .

Meanwhile, defence counsel (Makanjuola) argued that since the plaintiff had commenced the action by way of originating summons for which issues had been joined by parties, he cannot seek to withdraw same.

He argued that plaintiff had not sought to file his discontinuance within 14 days of receiving the counter affidavit of the defence, adding that issues had already been joined .

Makanjuola insisted that in the circumstances, the appropriate order for the court to make is a dismissal of the suit.

Besides, he reminded the court of an earlier order awarding cost of N200,000 against the plaintiff at the last adjourned date, which had not been obeyed, adding that the plaintiff ought to first obey the court’s order .

This position was also adopted by the second defence counsel.

In response, Falana pointed out that defence counsel ought to extend commendations to him, for his ability to bring such a public interest case before the court in the interest of Nigerians .

Falana argued that it is the responsibility of every well meaning Nigerian to protect the interest of his country which he had done by coming to court in such a suit.

He submitted that an order of cost was not appropriate in the circumstances.

In its ruling, the court first observed that the plaintiff’s suit was well intended in public interest and so should not attract any punitive measures from the court.